MNI POLICY: USTR Touts Progress on Phase One Implementation

By Brooke Migdon

     WASHINGTON (MNI) - U.S. Agriculture Secretary Sonny Perdue and U.S. Trade

Representative Robert Lighthizer on Tuesday said China has taken a number of

steps in implementing its agriculture-related commitments under the U.S.-China

Phase One trade deal that took effect this month.

     China has lifted the ban on U.S. poultry imports and begun to roll back

restrictions on imported U.S. products like feed additives and seafood spices,

they said in a statement. It has also updated lists of facilities approved for

exporting animal protein, pet food and dairy, among other products. China

announced tariff exclusions for imported U.S. agricultural products that had

been subject to retaliatory tariffs earlier this month.

     "We are already seeing positive results," Lighthizer said. "We will ensure

the agreement is strictly enforced for the benefit of our workers, farmers,

ranchers and businesses."

     Perdue said he "fully" expects compliance from China on all elements of the

deal.

     A USDA report published last week indicated that U.S. agricultural trade

with China should "return to normal" this year, but that U.S. farm exports to

China would only rise to USD14 billion, falling short of the USD40 billion to

USD50 billion commitment in the Phase One deal. USDA's chief economist and

author of the report said the spread of coronavirus across China adds some

uncertainty to the global trade outlook.

     President Donald Trump tweeted last week following the release of the

report that U.S. farmers would receive additional federal aid ahead of the

implementation of a number of recently signed trade deals, including the Phase

One agreement. Trump indicated that the federal aid would be funded by the

"massive" amount of tariff money coming into the U.S.

     Perude's office said over the weekend that China's purchases will be

closely monitored using a "detailed, data-driven matrix" and that the U.S. can

reintroduce tariffs on Chinese imports if China is not meeting expectations. 

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

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